Organizational Structure of Law Offices

Deciding on the type of organizational structure for your law office really depends on the size of your firm. In other words, if your firm is small, you may opt for a more traditional office as opposed something more contemporary and ultimately, much too complicated. Generally, there are approximately three types of law office structures. They each have different features.

Single or Individual Proprietorship

This is usually a one-person office with one paralegal. Sole proprietors have a variety of duties to perform and rely heavily on their only other resource, the paralegal. They generally practice more than one type of law, but tend to specialize in a precise field, such as a family law attorney who specializes in uncontested divorces. These offices are usually very simple to maintain and have a single accounting system to keep track of the budget and bill clients accordingly. They also have better tax implications because their overhead is much lower. Single proprietors are able to report their taxes on a completely different scale than larger firms and often qualify for tax shelters and other benefits.

Partnerships

A partnership consists of more than one attorney working in the same office or firm. They can be large or small in size and can have multiple specialties. They also make use of paralegals to complete their research; however, as the size of the firm increases, so do the resources. Most partnership-based office structures consist of a legal secretary and a paralegal for each attorney. They may also bring first-year associates along to assist with cases that require extra attention. Since most associates are used to long hours filled with detailed research, they can work closely with the paralegals to ensure all of the information they need is obtained. Partnerships carry a higher tax liability than individual proprietor firms.

Professional Corporations

A law firm that has become incorporated is owned by shareholders. They are usually other attorneys who have the responsibility of overseeing the company as a whole. Most professional corporations organize their firms in sections in accordance with the field they practice. For example, a senior attorney who practices personal injury will have an area to manage with subordinates such as associates and paralegals who report into the department. This carries through the entire structure until each senior attorney is accountable.